Approve the Plans and Specifications for the construction of the Slurry Seal of Palos Verdes Drive East Project.

Award a Construction Contract toRoy Allen Slurry Seal, Inc. in the amount of $158,630, for the Palos Verdes Drive East Slurry Seal Project, and authorize staff to spend up to $19,000 for possible extra work; thereby approving a $177,630 construction budget.

Authorize the Mayor and City Clerk to execute a contract withRoy Allen Slurry Seal, Inc.

Award a contract to Harris and Associates, for Construction Management and Inspection services in an amount not to exceed $28,000.

Authorize the Mayor and City Clerk to execute a contract with Harris and Associates.

BACKGROUND

The Slurry Seal of Palos Verdes Drive East Project was initially advertised, and bids were opened on July 13, 2004. All bids were substantially over the Engineer’s Estimate. At the August 17, 2004 City Council meeting all bids were rejected and staff was directed to make revisions to the plans and re-advertise the project.

The plans were modified and re-advertised. Modifications consisted of a reduction in the amount of asphalt to be removed and replaced. The associated changes to the bid sheet was made to further clarify the quantities required.

ANALYSIS

Project plans were re-advertised. Sealed bids were received and opened at 10:00am October 7, 2004. Roy Allen Slurry Seal, Inc. submitted the lowest responsible and responsive bid of the two received. The following table summarizes bids:

BID SUMMARY

CONTRACTOR

BID AMOUNT

Roy Allen Slurry Seal, Inc.

$158,630.00

American Asphalt South, Inc.

$171,140.00

Engineer’s Estimate

$152,000.00

The bids were reviewed for consistency with bid requirements. References were contacted and reported satisfactory or above performance on similar projects, the contractor has successfully completed similar work on projects for the City of Rancho Palos Verdes in the past.

Although the low bid exceeds the Engineer’s Estimate by 4.3%, the discrepancies have been generally identified. Material cost fluctuations associated with the cost of oil account for the differences between the Engineer’s Estimate and the low bid.

Funds for this project have been set aside through the Arterial Slurry Seal Program, Project Number 002803.

CONCLUSIONS

Adopting staff’s recommendations will result in approving the Plans and Specifications for the construction of the Slurry Seal of Palos Verdes Drive East Project, awarding a construction contract to Roy Allen Slurry Seal, Inc., awarding a contract for professional services to Harris & Associates, and authorizing the Mayor and City Clerk to execute those contracts.